Australia’s farmer-owned dairy company, Murray Goulburn Co-operative (MG), has released its opening milk price for the new season commencing 1 July 2012.
In a letter to its dairy farmer supplier-shareholders, MD Gary Helou said the opening farmgate price was $4.50 per kg milk solids which is 8.5% down on last year’s opening price of $4.92.
Helou said the price was influenced by recent significant falls in world dairy prices caused by increased milk production in key dairy export countries especially New Zealand, EU and the US, as well as the high Australian dollar.
Helou said: “Our forecast end-of-season milk price for the coming year is a range of $4.70 to $4.90 per kg milk solids. Volatile market and seasonal conditions may determine a final price up or down on this forecast. We will update suppliers with revised forecasts on a quarterly basis to support farmers’ business planning process.
“MG understands that dairy farming profitably at these opening and forecast prices will be very challenging and we will do everything possible to increase farmgate returns in the short and long term.”
Source: Murray Goulburn
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